How to File RTI with Income Tax Department — TDS Demand Notice, Scrutiny Basis and Penalty Orders

Tax demands, TDS mismatch notices, scrutiny assessments, penalty orders, and reassessment notices from the Income Tax Department are among the most stressful situations Indian taxpayers face. What makes them particularly difficult is that the Department's automated processing systems can generate a demand without a taxpayer ever understanding which specific entry triggered it, whose TDS return was wrong, or what evidence the Assessing Officer relied on. The Right to Information Act, 2005, gives every citizen a statutory tool to extract exactly this information.

The Central Board of Direct Taxes (CBDT) — the apex policy-making body for direct taxes under the Ministry of Finance — and its field formations (Assessing Officers, Income Tax Officers, Commissioners of Income Tax) are all public authorities under Section 2(h) of the RTI Act. This means they are legally obligated to respond to RTI applications within 30 days.

Note: This guide covers the demand side — TDS mismatch demands, scrutiny assessments, penalty orders, and reassessment notices. If you are looking to track a pending ITR refund, please use the separate ITR Refund RTI Guide.

RTI vs. Statutory Appeals: How to Use Both

RTI and statutory appeals under the Income Tax Act are not alternatives — they serve distinct purposes. Understanding this distinction ensures you use the right tool for the right job, and that you use both where appropriate.

Best practice: File the RTI first to get the full written record — the demand computation, the assessment order, the specific issues identified, the reasons to believe. Then use that record to build a well-grounded statutory appeal to CIT(A) or revision to CIT.

Which Office to RTI

The Income Tax Department is a large field organisation. Filing with the correct office ensures a faster response and avoids transfer delays.

Finding your jurisdiction: Log in to the Income Tax e-filing portal at incometaxindia.gov.in → My Profile → Jurisdiction Details. This shows your AO type (ITO / ACIT / DCIT), the Ward or Circle number, and the city. Use this to select the exact office on the RTI Online portal.

Key RTI Use Cases

What Specific Information Can You Ask For

1. TDS demand notice basis: The specific TDS credit entries disallowed while processing your ITR under Section 143(1); the TAN and name of the deductor(s) whose entry was disputed; the TDS return data held by the Department for those deductors for the relevant quarter; the Form 26AS schedule for your PAN for the assessment year.
2. Challan credit status: Whether a specific self-assessment tax challan (BSR Code, Serial No., Date) has been applied against your PAN for the stated assessment year; the current outstanding demand assessment year-wise as per Departmental records.
3. Scrutiny assessment basis: The issues or discrepancies identified in a completed Section 143(3) assessment; the nature of documents called for; a copy of the assessment order.
4. Penalty provision and calculation: The specific sub-section of Section 271, 271A, or 271B of the Income Tax Act under which penalty was levied; the amount of income or the default on which the penalty calculation is based; a copy of the penalty order.
5. Section 148 reasons to believe: The full text of the reasons recorded by the Assessing Officer before issuing the reassessment notice; the specific material or information in the Department's possession that formed the basis of those reasons.
6. CBDT circulars and instructions: A copy of any CBDT Circular or Instruction applicable to a specific disputed situation (e.g., on allowing TDS credit for deductors who file revised TDS returns after ITR processing, or on a specific category of income that was added in assessment).

Where to File: Step by Step

For AO-Level Queries (TDS Demand, Scrutiny, Challan, Penalty, Reassessment)

1. Visit rtionline.gov.in
2. Click Submit Request
3. Select: Ministry of Finance → Income Tax Department → Your Jurisdictional AO/ITO/CIT Office
4. In the application text, provide your PAN, assessment year, demand notice number (if applicable), and your specific questions. Keep the text under 3,000 characters; if longer, attach a separate document.
5. Pay ₹10 online. BPL cardholders are exempt — upload a copy of the BPL card.
6. Save the registration number displayed after submission.

For CBDT Policy/Circular Queries

1. Visit rtionline.gov.in
2. Click Submit Request
3. Select: Ministry of Finance → Central Board of Direct Taxes
4. Describe the circular or instruction you are seeking, with enough context to allow the CPIO to identify the relevant document.
5. Pay ₹10 online and save your registration number.

Appeals

The Income Tax Department has 30 days from receipt to respond under Section 7(1) of the RTI Act. If the response is absent, incomplete, or unsatisfactory:

First Appeal — Section 19(1), RTI Act: File with the First Appellate Authority (FAA) — the Commissioner of Income Tax (CIT) above your AO's office — within 30 days of the date of decision or the expiry of the 30-day response period, whichever is applicable. State why the response was inadequate and what specific information was not provided.

Second Appeal — Section 19(3), RTI Act: If the FAA also fails to respond or gives an inadequate response, file a Second Appeal with the Central Information Commission (CIC) within 90 days of the FAA's decision or the date it should have been made. The CIC has jurisdiction over all Central Government public authorities including CBDT and the Income Tax Department.

Section 20 Penalty: The CIC is empowered under Section 20 of the RTI Act to impose a penalty of up to ₹25,000 on a CPIO who, without reasonable cause, refuses to receive an application, does not furnish information within the time limit, malafidely denies a request, or gives incorrect information. Citing this in your second appeal often accelerates a response.